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Title: |
Inflation and Uncertainty: The Case of Korea |
| Author: |
Park, Dongsoon |
| Author
Affiliation: |
Bank of Korea |
| Source: |
International Economic Journal, Spring 1995, v. 9, no. 1, pp. 39-52 |
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Publication Date: |
Spring 1995 |
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Abstract: |
This paper examines the empirical
relationship between inflation and various uncertainty measures of
inflation over time by using the Korean consumer price index. Our
results suggest that there exists a strong positive linear relationship
between the trend inflation and uncertainty measures. This linear
relationship breaks down, however, when the time-series data are sorted
in ascending order of trend inflation and disaggregated into two low and
high inflation subperiods. In general, the relationships are negative at
low inflation but significantly positive at high inflation. |
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